Business
Half-year results
Half-year results.
About this update from Compass Group Plc
[{"type":"text","content":"\n\n \n\n\n\n\n\n\n\nLegal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68\n\n\n\n\n \n\n\n\n \nHalf-year results announcement for the six months ended 31 March 2023\n \n\n\n\n\n\n\nUnderlying1 results\n\n\nStatutory results\n\n\n\n\n\n\n\nHY 2023\n\n\nHY 2022\n\n\nChange\n\n\nHY 2023\n\n\nHY 2022\n\n\nChange\n\n\n\n\nRevenue\n\n\n£15.8bn\n\n\n£12.6bn2\n\n\n24.7%3\n\n\n£15.7bn\n\n\n£11.5bn\n\n\n36.2%\n\n\n\n\nOperating profit\n\n\n£1,050m\n\n\n£744m2\n\n\n41.1%2\n\n\n£878m\n\n\n£638m\n\n\n37.6%\n\n\n\n\nOperating margin\n\n\n6.6%\n\n\n5.8%\n\n\n80bps\n\n\n5.6%\n\n\n5.5%\n\n\n10bps\n\n\n\n\nEarnings per share\n\n\n42.7p\n\n\n29.9p2\n\n\n42.8%2\n\n\n36.4p\n\n\n26.7p\n\n\n36.3%\n\n\n\n\nOperating cash flow\n\n\n£871m\n\n\n£557m\n\n\n56.4%\n\n\n£944m\n\n\n£663m\n\n\n42.4%\n\n\n\n\nFree cash flow\n\n\n£590m\n\n\n£360m\n\n\n63.9%\n\n\n \n\n\n\n\n\n\n\n\n\n\nInterim dividend per share\n\n\n15.0p\n\n\n9.4p\n\n\n59.6%\n\n\n15.0p\n\n\n9.4p\n\n\n59.6%\n\n\n\nStrong half-year results, raising FY 2023 guidance and announcing\na further share buyback of up to £750m\nHalf-year highlights\n· Strong organic revenue growth of 25% with excellent net new business of 5.2%\n- First-time outsourcing trends continue, accounting for c.45% of new business wins\n- Balanced growth across all regions with very strong performance in Europe\n- Maintaining strong client retention rate\n· Operating profit over £1bn and operating profit margin of 6.6%, up 80bps\n· Strong cash generation, net debt to EBITDA reduced to 1.1x\n· Further share buyback of up to £750m to be completed this calendar year\nStrategic priorities for growth - capturing the outsourcing market opportunities\n· Sustaining the outperformance in North America\n· Building a track record of growth in Europe and Rest of World\n· Exited six tail countries as we continue to reshape our portfolio to focus on growth opportunities in attractive markets\nRaising FY 2023 outlook\n· Operating profit growth2 towards 30% (from above 20%), delivered through:\n- Organic revenue growth of around 18% (from around 15%)\n- Operating margin in the range of 6.7% to 6.8% (from above 6.5%)\nChange in reporting currency\n· Group to rep...